First Freight Train via UK East-West Rail

Maritime Transport, one of the UK’s leading providers of integrated road and rail freight logistics, has launched a new rail freight service connecting DP World Southampton with its Strategic Rail Freight Interchange (SRFI) at SEGRO Logistics Park Northampton (SLPN).

Maritime Intermodal Six arrived in Northampton on 16th June – the first freight train to enter service at Maritime’s 35-acre SRFI, and the first to operate the full length of the newly reinstated section of East West Rail (EWR) between Oxford and Bletchley.

Part of a government-backed programme to re-establish a strategic rail corridor between Oxford and Cambridge, the reinstated Oxford-Bletchley route restores vital east-west connectivity across central England and offers a practical alternative to traditionally congested north-south routes. The introduction of Maritime’s latest service on the newly reopened stretch is a milestone for the UK rail freight sector, unlocking new cross-country options for domestic and containerised cargo, and bringing nationally significant infrastructure into operational use to support regional economic growth.

Operated by DB Cargo UK, the service runs five days a week, with a capacity of up to 68 TEU per train, and provides a new, direct inland link to one of the UK’s busiest deep-sea ports. The service has been supported by Network Rail’s Track Access Discount Scheme, an important initiative to promote modal shift and encourage new rail freight business, whereby relevant access charges are waived for six months whilst new traffic is being established.

The launch follows two additional paths introduced by Maritime in recent weeks, linking DP World London Gateway with its rail terminals at Hams Hall and Doncaster (iPort). Two further services are scheduled to follow, connecting London Gateway and the Port of Felixstowe with Northampton as part of a three-phase expansion programme to increase low-carbon rail capacity across the company’s national network.

Maritime’s SRFI at Northampton forms part of a wider £200 million infrastructure investment by SEGRO and connects directly to the West Coast Main Line via the Northampton Loop. Network Rail’s modern design of the railway junction allows trains to move between the main line and interchange at speeds of up to 40mph instead of a standard 5mph – getting freight trains on their way faster and reducing impact on other trains on the network. Formally integrated into the national rail network earlier this year, the SRFI sits at the heart of a major logistics hub adjacent to Junction 15 of the M1.

John Bailey, Managing Director – Intermodal, Maritime Transport, said: “The arrival of our first service via EWR is an important step in expanding UK rail freight capacity, providing businesses with a direct, low-carbon route from Southampton to the heart of the UK’s golden logistics triangle. This development demonstrates how infrastructure and private-sector investment can deliver a more efficient and sustainable supply chain, while easing pressure on a congested road network.”

Roger Neary, Chief Sales Officer, DB Cargo UK, added: “Having recently operated the first locomotive into SEGRO Northampton Gateway to ‘prove’ the infrastructure, DB Cargo UK is proud to once again be partnering with its long-standing and strategic customer on this significant inaugural flow into Northampton Gateway. Not only does this new flow facilitate additional capacity into this important region of the country, it will do so in a sustainable manner utilising new Network Rail infrastructure and – crucially – funding, delivering benefits to Maritime Transport and their own customers alike.”

Brian Paynter, Capital Delivery track director, Network Rail, said: “Seeing both this new rail connection to Maritime’s SRFI and the East West Rail route in commercial freight use for the first time are huge moments in both projects. Opening up this economically important rail route will give much more flexibility for our freight operators greatly improving connectivity across the country, while benefiting the environment through taking HGVs off roads – providing a lasting legacy for communities and business.”

Kate Bedson, Senior Director, National Markets, SEGRO, commented: “We’re excited to see real momentum building at SEGRO Logistics Park Northampton, marked by the completion of the rail freight terminal infrastructure, the arrival of the first train and the completion of Yusen Logistics’ new facility – the first warehouse to be constructed on the park. Each freight train can remove up to 76 HGVs from the road with a consequential reduction in carbon emissions, making this a crucial step towards more sustainable logistics. With rail freight contributing £1.7 billion to the economy, this milestone is not only a shot in the arm for growth, it also supports a greener, more efficient supply chain.”

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SELP Purchase Tritax Eurobox Assets

Further to its announcement on 12 November 2024, SEGRO, in its role as venture adviser to the SEGRO European Logistics Partnership (“SELP”) joint venture, today announces that SELP has exchanged on the purchase of a portfolio of six assets from Titanium Ruth Holdco Limited (formerly known as Tritax EuroBox plc). The transaction values 100% of the assets at €470 million, including relevant property taxes and subject to customary adjustments. The portfolio totals 370,000 sq m of fully-leased, highly reversionary, modern logistics space. The assets are located in the established and attractive logistics hubs of Breda and Roosendaal in the Netherlands as well as in the Frankfurt corridor and the Rhine-Ruhr region in Germany. The assets currently generate approximately €24 million of headline rent, resulting in a blended net initial yield of 5.0 per cent and a net true equivalent yield of 5.4 per cent.

The transaction is conditional on European Union anti-trust clearance, which is expected in the first quarter of 2025.

David Sleath, CEO of SEGRO, said:

“We are delighted to have reached an agreement to purchase this portfolio of high-quality big box warehouses, located in some of Europe’s most attractive logistics hubs. They will complement SELP’s existing German and Dutch portfolios, offering both future rental growth potential and the ability to enhance returns through the benefits of increased scale.”

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Large Solar Panel Installation at London Logistics Centre

SEGRO has completed its largest solar panel installation in London at SEGRO Logistics Centre Faggs Road, which is located a few minutes from Heathrow Airport. The project is in partnership with its customer, GEODIS, a leading worldwide provider of customised transportation, warehousing, global logistics and supply chain solutions.

SEGRO has been working closely with GEODIS, which occupies a 96,562 sq ft unit in Hounslow, to install 1,750 PV panels on its roof, with installed capacity 700 kWp. The energy produced by this solar array is equivalent to powering 75 homes and saves as much carbon annually as planting 5,445 trees.

The project aligns with the ‘Responsible SEGRO’ commitment to champion low-carbon growth and requirements of the Heathrow supply chain, where businesses are expected to demonstrate low-carbon building practices to support the airport’s sustainability goals.

As part of the initiative, SEGRO was able to secure a ‘Power Purchase Agreement’ that enables the customer to benefit from cheaper electricity.

Chris Packwood, Managing Director at GEODIS, said: “We are delighted with the evolution of our facility, to now harness the power of the sun. This further strengthens the GEODIS commitment to sustainability, by having confidence in the origin of our power supply and the associated REGO certificates.”

Gareth Baker, Director, Western Corridor at SEGRO, said: “It is fantastic to deliver this exciting project, providing both environmental and cost benefits to GEODIS. This project is a prime example of how we can collaborate with our customers to drive sustainable growth. Not only does it significantly reduce carbon emissions by generating renewable energy on-site, but it also helps GEODIS to reduce its operational costs in the long run.”

The installation is linked to GEODIS’ recent lease renewal and as part of the agreement, SEGRO installed six electric vehicle charging stations, furthering the sustainability credentials of the development.

SEGRO Logistics Centre Faggs Road is located within minutes of Heathrow Airport. As well as being in a prime position with easy access to the A30, the development is well connected with the M25 within 6 miles to the west, giving swift access to the UK’s motorway network.

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Greggs invests in manufacturing and logistics site

UK food-on-the-go retailer, Greggs, have announced it’s entering into a lease agreement for a new state-of-the-art frozen production and logistics facility in Derby, Derbyshire.

Greggs’ strategic growth plan, announced in 2021, set out ambitious expansion targets requiring investment in significant supply chain capacity. At 12 May 2024, Greggs had 2,500 shops trading and it expects to open between 140-160 net new shops during 2024. The longer-term target is to have significantly more than 3,000 shops trading in the UK.

The new facility is being developed at SmartParc SEGRO Derby on a high-tech food manufacturing site in Spondon, Derby. Greggs will occupy a 23-acre plot on the campus. Following the construction of the building by the landlord, Greggs will develop the facility and install state-of-the-art manufacturing and logistics equipment to optimise the efficiency of operations on site. The site is expected to open in late 2026 and create up to 600 jobs.

The new purpose-built facility will provide additional manufacturing capacity for products – including new savoury and sweet production lines – as well as logistics for frozen storage and fully automated robotic shop order picking and distribution solutions from Swisslog, one of the world’s leading logistics automation companies. The facility will also have additional capacity to enable further investments to meet future category growth, innovation and development, including the capacity for at least five manufacturing platforms and the potential for new production lines to be commissioned to meet volume demand.

The site has been designed with a focus on sustainability including the use of an onsite shared Energy Centre (a centralised heating and cooling system that recycles heat from refrigeration plants across the estate), a rainwater harvesting system, PV panels, EV charging points and a secure bike storage to help reduce local emissions.

Roisin Currie, Chief Executive at Greggs commented: “We are delighted to announce our new state-of-the-art facility at SmartParc SEGRO Derby. This purpose-built site offers significant flexibility to add new capabilities and lines as our business evolves. This is a significant step in our supply chain investment and will provide much-needed manufacturing and logistics support to power our ambitious growth plans.”

Jackie Wild, CEO at SmartParc said: “It is our ultimate vision that SmartParc SEGRO Derby becomes a hub for forward-thinking food businesses seeking sustainable and efficient operations, a collaborative work space and a first-class location with excellent connectivity, whilst also putting their people first. Greggs embodies this approach and we are immensely proud to welcome such a cherished food business to the site.”

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Contract Signed for New Warehouse Project

Yusen Logistics (UK), a leading provider of logistics solutions, and SEGRO, owner, manager and developer of modern warehouses and industrial property, aim to set new standards in the logistics industry with an impressive, shared user warehouse facility at SEGRO Logistics Park Northampton.

“This Yusen Logistics UK facility, in partnership with SEGRO, sets a new logistics industry benchmark and further emphasizes Yusen Logistics’ commitment to providing sustainable logistics services by 2030. We are both proud and excited to be a part of this exciting project and look forward to achieving our sustainability goals,” said David Goldsborough, Managing Director of Yusen UK.

The groundbreaking ceremony for the largest new build project for Yusen Logistics is planned to take place in early 2024, with the site expected to be fully operational by summer 2025. The building is designed to achieve a BREEAM Excellent rating, which will reduce carbon to net zero during build and is designed to save approximately 418 tCO2e in scope 1 and 498 tCO2e in scope 2 annually.

The £280m investment in the 1,191,000 sq ft facility has been designed to incorporate several key initiatives that Yusen Logistics believe will achieve net zero for the operation. The warehouse will benefit from a solar array spanning the entire roof space, generating approximately 1,850 MWh in the first year, allowing for surplus energy to be exported to the National Grid, generating green energy for others to benefit from. Yusen Logistics already procure green energy as part their Zero Carbon programme, which excludes natural gas.

New Warehouse Project

The site also enjoys excellent connectivity to the M1, as well as public transportation. Yusen Logistics colleagues will benefit from green spaces, increased bicycle storage and car charging for 220 Electric Vehicles which includes Yusen Logistics all electric company car fleet. The facility immediately adjacent to SEGRO’s 35-acre Strategic Rail Freight Terminal, enables Yusen Logistics to provide their customers with rail freight solutions providing CO2 savings on inbound transport.

The site includes 220 truck parking spaces including Electric Truck charging with 70 loading docks and 6 level access doors. The temperature management system supports chilled storage for planned MHRA and GDP compliant Healthcare storage and also ambient multiuser storage. Other sustainable investments include automated pick, pack and sustainable packing solutions further supporting Yusen Logistics customers sustainable objectives.

Dan Holford, Head of National Markets at SEGRO, said: “We’ve been working hard to create the infrastructure and develop this site in preparation for the first warehouses. It is testament to our strong customer relationship that Yusen Logistics UK has chosen to grow with us and become a strategic occupier at SEGRO Logistics Park Northampton. SEGRO Logistics Park Northampton not only represents a critical piece of our national industrial infrastructure for storing and transporting goods, it is enabling employment and economic growth and doing so with sustainability at its heart. We’re particularly pleased that rail freight terminal is proving to be an important factor in the decision to locate at this development.”

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Small Businesses Thrive at Logistics Park

SEGRO has welcomed three new customers to its logistics park in Rainham, as it continues to meet strong demand for well-located and modern industrial space in East London. The businesses will be located in the development’s Enterprise Quarter which provides industrial space designed to enable small businesses to thrive and grow.

Star Batteries, a newly formed business that provides high quality power units to the automotive industry, has agreed a lease for a 1,115 sq ft unit. The new unit will enable the company to service the East London market. GER Construction, a UK specialist contractor offering mastic sealant and fireproofing services across all construction markets, has also completed a new lease. The 1,119 sq ft. space will be used for the storage of materials and the operation of a trade counter.

Another customer taking space at the Enterprise Quarter is City Removals, a family-run domestic and commercial removal company, which handles business relocations and provides a comprehensive range of storage and packing solutions. It will be using its new 1,639 sq ft unit for storage purposes. Meanwhile, an existing customer, The Goodness Baker, has recently grown at the Enterprise Quarter. The pastry and cakes company currently occupies two units at the Innovation Business Centre, and is taking a third unit. The new space, measuring 3,732 sq ft, which will be used to bake bread products, exemplifies SEGRO’s role as a facilitator for growth.

In line with the company’s Responsible SEGRO commitment to supporting local businesses and communities, SEGRO Park Rainham is part of the company’s East Plus regeneration scheme – a partnership with the Greater London Authority, which will deliver 1.4 million sq ft of modern industrial space, spanning Havering, Newham and Barking & Dagenham and breathing life into previously derelict land.

Colin Chambers, Company Director, at Star Batteries, said: “We are very pleased with our new facility at SEGRO Park Rainham Enterprise Quarter. The ideal location and excellent onsite facilities, coupled with the flexible leases, will provide the right environment for us to grow our business.”

Logistics Park

Bonnie Minshull, Head of London at SEGRO, said: “The Enterprise Quarter at SEGRO Park Rainham is a fantastic base for start-ups and small businesses looking for modern, high-quality facilities that offer wonderful amenities and great customer service to support their growth. A key objective of SEGRO Park Rainham is to provide a variety of different types and sizes of space that are suitable for a range of local businesses. We are proud of the thriving community of business owners and entrepreneurs that is being established at the Enterprise Quarter and look forward to seeing many more success stories in the future.”

SEGRO Park Rainham’s Enterprise Quarter is aimed at start-ups, as it offers flexible leases, additional support services and access to amenities to aid growth. With a range of units and lease options, it also provides customers the option to take up more space as their businesses grow. Split between two developments, Innovation Business Centre, tailored to meet the needs of start-ups, and Enterprise Business Centre, a space that offers slightly larger units for growing SMEs, it offers modern, flexible business, warehouse and industrial space from 549 sq ft to 3,732 sq ft.

UK Entry via Acquisition of 2 Logistics Assets

P3 Logistic Parks announces its expansion into the United Kingdom through the acquisition of two logistics assets from Segro, totalling 81,000 sqm of space in well-established locations. One asset is located in Crick and comprises around 36,000 sqm lettable area. The second asset with more than 45,000 sqm is located in Kettering.

Frank Pörschke, CEO of P3 Logistic Parks, commented: “The acquisition of these two logistics assets in the UK marks a significant milestone for P3, as it expands our operations into a key market known for its robust logistics industry. The country has always been a vital hub for international trade and commerce, and we are excited to offer our expertise and resources to meet the evolving needs of businesses operating in this region.”

The newly acquired logistics assets are strategically located within the “Golden Triangle” area and provide seamless connectivity to major transportation networks and key industrial centers in the UK. All units were developed from 2010 onwards to a modern Grade A institutional specification including BREEAM rating ‘Very Good’ and are fully leased out to three tenants.

P3 is partnering with Roebuck, an institutional Pan-European investment manager specializing in the European logistics sector. Roebuck is assisting P3’s entry into the UK using their extensive track record and occupier-led experience and will manage both assets in the initial stage of P3’s expansion into the UK.

Otis Spencer, CIO of P3 Logistic Parks, stated: “P3’s entry into the UK market reflects our long-term vision and strategic growth plans. We have carefully selected these logistics assets as they align with our commitment to delivering excellent service quality, operational efficiency, and sustainability to our customers.”

David Proctor, Managing Director of Group Investment at SEGRO, commented: “This disposal has enabled us to divest a number of relatively small holdings, all of which were ear-marked for disposal in the near to medium-term, allowing us to recycle capital into our successful development programme. It also demonstrates the continuing investment appeal of high-quality logistics assets after the significant valuation correction that occurred over the last year.”

The terms of the transaction have not been disclosed. P3 was advised by Colliers on the transaction. DTRE and ACRE acted on behalf of SEGRO.

Ed Plumley, Director, EMEA Capital Markets, Colliers said: “These acquisitions are the good news the market needs. It is a clear demonstration that investor appetite remains for assets in core locations with long-term growth and ESG performance opportunities. Colliers were delighted to bring this off-market opportunity to P3 and provide focused advice as they expanded into a new jurisdiction.”

Government Action Needed to Decarbonise Logistics Sector

The UK Government must ensure policy supports the decarbonisation of London’s logistics sector if the UK is to meet net zero ambitions, according to a new report released today.

Installing rooftop solar panels across all logistics spaces and clarifying the electrification of HGVs across the Capital, are two of the three recommendations made to Government today by planning and development consultancy, Turley, and the London Industry and Logistics Sounding Board (ILSB) as part of The Accelerating Logistics Towards Net Zero report. The report highlights the issues facing London’s logistics sector.

Logistics remains one of the largest emitting sectors in the UK. Transport alone produced 24% of the UK’s total emissions in 2020. While the Government has a programme to confirm the way forward for zero carbon HGV fuels by 2030, this new report argues this will be too late for the logistics sector. Instead, Turley and the ILSB are calling on Government to provide interim direction and policy support, to allow investment that supports the rollout of hydrogen or electric-powered HGVs for nationwide fossil-fuel free fleets.

Businesses like Amazon are already committing to a sustainable HGV future. The retail giant is investing £300m in the UK to decarbonise its fleet and replace with electric HGVs, electric vans, and eCargo bike fleets, as well as rolling out fast charging infrastructure. Other organisations are delaying due to the lack of clarity on the way forward. A second recommendation calls for further support to speed up the deployment of rooftop solar panels on warehouses in London and the rest of the UK.

Existing warehouse roof-space across the UK could host 15GWp of solar power, doubling the nation’s current total installed capacity without any loss of land. However, only 5% of warehouses currently have solar panels installed, according to the UK Warehousing Association.

The report argues that slow grid upgrades, regulation around sharing and selling energy generation, and the need to embrace smart management is holding back the rollout of solar across the logistics industry. A need to embrace complexity is hindering the development of the last mile logistics sector too. Last mile delivery can significantly cut the carbon footprint of deliveries across London, by bringing storage closer to the point of delivery, with different vehicles like electric vans, bikes, drones, autonomous robots and even walking supporting the final stage of delivery.

However, as last mile logistics can be so variable in nature and needs to be closely located with other uses, a flexible and positive approach is required from a planning/policy perspective. Both the public and private sector will need to think more creatively to incorporate local distribution hubs in strategic urban locations where this type of space is needed the most.

Barny Evans (pictured), Director, Sustainability, at Turley, said: “The logistics sector is the lifeblood of our economy. The industry recognises it is a significant source of GHG emissions and other environmental impacts; it is eager to accelerate its decarbonisation. There’s a responsibility on Government to unlock the barriers to this, and provide the policy needed.”

Sarah Bevan, Director, Planning & Development at BusinessLDN and co-founder of the Industry and Logistics Sounding Board, said: “Logistics is one of the fastest growing sectors for the economy and substantially impacts aspects of all businesses across the Capital and UK. Like all high carbon-emitting sectors, regulatory certainty and policy reforms are necessary to drive innovative solutions, such as HGV decarbonisation, and investment in renewable energy solutions like rooftop solar installations to reduce our carbon footprint. “That’s why it’s imperative that steps are taken now to decarbonise the sector and help us reach net zero before it is too late.”

Jules Pipe, Deputy Mayor of London for Planning, Regeneration and Skills, added: “Our net zero targets are ambitious and if we are to meet them the decarbonisation of energy intensive sectors like logistics is critical. Businesses operating in the sector have a key role to play but Government support will be equally important. This report calls on Government to speed up the decarbonisation of one of our most important sectors and proposes three key areas for action.”

Alan Holland, Managing Director for Greater London at SEGRO, added: “SEGRO and many of our customers are making huge strides towards the transition to net zero carbon, but success will also be measured on whether the whole sector can lower its carbon emissions not just a proportion of those operating within it. To be effective, much of this collective action and investment needs to be matched by having the right public infrastructure and a smart approach for how we plan the use of land. We welcome this report’s exploration of some of the key challenges, we encourage industry peers to embrace the innovation opportunities it identifies and we ask for policy makers to act on its recommendations.”

New Logistics Park: East Midlands Gateway

SEGRO has completed a pre-let deal with Maersk, which will see the Danish shipping and logistics company establish a new centre of excellence at SEGRO Logistics Park East Midlands Gateway (SLPEMG).

Maersk will occupy a new 685,000 sq ft warehouse, designed specifically for them, which will complete in June 2023. In alignment with SEGRO’s net-zero 2030 and Maersk’s net-zero 2040 commitments, the unit is being constructed to be net-zero for both embodied and operational carbon. It will incorporate a full roof mounted PV array and extensive use of recycled construction materials. Provisions will also be made for the operation of a fully electric fleet of HGV vehicles in the future. The development expands Maersk’s offering of end-to-end logistics in the UK significantly and is the first bespoke pre-let logistics unit that the company will operate in the country.

SLPEMG is SEGRO’s flagship national big box scheme, a 700-acre development that has delivered over 4.5 million sq.ft. of sustainable logistics workspace. As part of the UK’s only inland freeport, the site incorporates a 50-acre Strategic Rail Freight Interchange (SRFI). Maersk selected SLPEMG as the site most capable of delivering operational excellence for their customers’ needs, with its central strategic location and on-site rail freight terminal providing a direct link to the seaports of Felixstowe, London Gateway and Southampton, amongst others, in order to minimise logistics emissions and significantly reduce on-road freight mileage. The benefits afforded to Maersk’s operation by the East Midlands Freeport further helped the case for choosing SLPEMG.

SEGRO Logistics Park East Midlands Gateway started construction in 2017. The site was initially anticipated to be a 10-year programme, however, occupier demand and leasing success has exceeded expectations, as the last big box plot now been leased.

Andrew Pilsworth, Managing Director, National Logistics, SEGRO, said: “SEGRO Logistics Park East Midlands Gateway is especially attractive to customers like Maersk due to the development’s scale, connectivity and our determination to develop to the highest quality and sustainability standards. The extraordinary pace at which we have delivered this scheme illustrates this. We are very excited to welcome Maersk to SLPEMG and as a new customer. We also welcome the additional employment and economic activity it will bring to the East Midlands, building on the 6,000 jobs already created at SLPEMG.”

Paul Woolass, Head of Logistics and Services Products UK & Ireland, Maersk said: “SEGRO Logistics Park East Midlands Gateway is very much the perfect blueprint for optimising connectivity and flexibility within supply chains. Not only is it ideally positioned in the UK, but the vast infrastructure and cutting-edge technology across the site means operations on UK shores can be done from one place in the most sustainable way possible. It is the epitome of two of Maersk’s key visions for the future: integrating logistics and reaching net-zero emissions by 2040.”

In November, SEGRO launched its Community Investment Plan in the East Midlands, supporting local people with skills, employment, environment and economic investment. The plan is being delivered with its construction partner, customers, suppliers and four local charity partners to undertake a range of projects with the aim of achieving the following outcomes by the end of 2025:

• 5,250 young people will be engaged through a Schools Work Programme
• 300 unemployed people will participate in bespoke skills, and training programmes
• 6 outdoor spaces will be reinvigorated to improve biodiversity and support community wellbeing

The East Midlands Community Investment Plan is a key element of the company’s commitments to boost skills, training and employment in the communities where it operates across the UK and Continental Europe. Already home to a diverse range of customers including Kuehne+Nagel, ShopDirect, Games Workshop, Arvato and DHL, SLPEMG is in proximity to the major cities of Leicester, Derby and Nottingham and other local towns ensuring the park’s customers have access to a strong labour pool.

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